Forecast future values of an asset using Monte Carlo simulation. Predicts price series based on starting price, periods, volatility, and drift.

Forecast Future Values of an Asset based on Monte Carlo Simulation

Purpose

This calculator function is designed to forecast future values of an asset based on Monte Carlo Simulation. It takes into account the starting price of the asset, the number of periods to forecast, the volatility of the asset, and the drift of the asset.

Use Cases

• Investors can use this tool to estimate potential future values of an asset based on different scenarios.
• Financial analysts can utilize this function to perform risk analysis and make informed decisions.

How to Use

1. Enter the required input values in the respective fields.
2. Click on the "Calculate" button to generate the forecasted values.

Input Values

1. Starting Price: The initial price of the asset.
2. Periods: The number of periods to forecast.
3. Volatility: The measure of how much the asset's price may change.
4. Drift: The average rate of return of the asset.

Output Values

1. Forecast Values: The predicted future values of the asset based on the Monte Carlo Simulation.

Any other Instruction

• Make sure to input realistic values for accurate forecasts.
• Understand that the results are estimates and may not reflect the actual future values.

Calculation Steps

1. Calculate periodic returns using the provided volatility and drift.
2. Generate a series of future prices based on the calculated returns.

Technical Parameters

• starting_price, periods, volatility, drift

Return Values

• Forecast Values

Example Expressions

You can use the following expressions to directly evaluate in a non-interactive manner using eval():

eva(monte_carlo(100, 10, 0.05, 0.0))
eva(monte_carlo(150, 5, 0.03, 0.02))

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